Tech stocks, including biotech, fintech (and financial), have booming throughout the pandemic.
“Tech has been hot. Investors should investigate the best tech stocks, including Google, Facebook, Amazon and Tesla. Tesla rose from last week. the FAANGs, check out the oil stocks, 5G stocks and find those that are ready rise in value.”
The S&P 500 is up over 10% for the year and the Dow Jones Industrial Average just hit a new intraday high above 35,000. Yet at the same time, last year’s market leaders (small-cap tech stocks) are vastly underperforming the market. Cathie Wood’s ARK Innovation ETF, which in many ways embodies hypergrowth investing, is down over 15% for the year.
Investors continue to shift away from growth toward income and value.
As we wrote in our recent article about rising construction commodity costs, material supply as well as the product pipeline is being hampered by COVID related constraints. Additionally, normally vibrant sectors of the economy such as retail, tourism and hospitality are seriously depressed.
What (analysts) might be overlooking is the factor that’s also harming the housing market: lack of supply. With the pandemic shutdown in the US and with regulatory restriction on materials/manufacturing, the market is grossly under-supplied. It looks like this matter won’t be solved easily, and the result is prolonged unemployment with inflation. It’s a little bit of stagflation.
Which leads us to the Elephant in the Room….INFLATION.
5 things to do if a crash or big correction occurs ( according to nasdaq.com )
Understand your risk tolerance ahead of time
Reassess your holdings
Have cash at the ready
Don’t forget about dividend stocks
Think value during the early stages of an economic recovery
Keeping yourself informed of the key factors and variables in investment trends requires your time to read up, keep in the loop and stay current. Having a solid group of partners and advisors that you can trust means everything, especially in these times of rapid change, turbulence and uncertainty.
We hope that you enjoy reading our weekly emails, that they help you with your analysis and choices for your holdings.
As the world will continue to change, so will the markets – and your investments.
We at BAI Capital are just one phone call or email away, to answer any of your Equity, EB-5 immigration, and property investments.